New Model Ppa To Give Payment Security

Solar energy companies will get payment security built into their contracts with electricity buyers such as state utilities under a model power purchase agreement (PPA) that the government has prepaed and plans to enforce.

The Ministry of New and Renewable Energy hopes that the new PPA model would help minimise conflicts between solar power producers and agencies that purchase the output.

“The standardised PPA will be applicable to both domestic and international players in solar market,” said Santosh Vaidya, a joint secretary at the ministry. It will be used not only by central agencies like NTPC and Solar Corporation of India (SECI), but also state discoms.